Trajcevski and Secretary, Department of Social Services (Social services second review)

This matter concerned a review of a decision by the Secretary of the Department of Social Services regarding Mr Trajcevski's eligibility for a disability support pension. The dispute centred on the application of a lump sum compensation preclusion period arising from a car accident settlement. The review was conducted by Professor R McCallum AO, Member.

The Member was required to determine two principal issues. Firstly, whether Mr Trajcevski was subject to a lump sum compensation preclusion period and, if so, for what duration. Secondly, the Member had to consider whether any special circumstances existed that would justify waiving all or part of that preclusion period.

In addressing the first issue, the Member found that the compensation received by Mr Trajcevski under the CARS scheme fell under subsection 17(3)(b) of the relevant Act, which pertains to payments where proceedings are not settled. The Member determined that the Secretary had correctly applied this provision by identifying $112,500 as the amount in respect of past and future economic loss. The Member also found that the "income cut-out amount" of $940.20 used in the calculation was correctly determined. Consequently, the Member calculated a preclusion period of 119 weeks, commencing on 6 December 2012 and concluding on 18 March 2015, and affirmed the imposed compensation charge.

Regarding the second issue, after considering all the evidence presented, the Member concluded that no special circumstances existed in Mr Trajcevski's case to warrant the exercise of the discretion under subsection 1184K of the SS Act to disregard the whole or part of the compensation preclusion period. Accordingly, the decision under review was affirmed.